Gold falls Rs300, rupee appreciates in open market

Gold prices in Pakistan experienced a decline on Saturday, reflecting a similar trend in the international market.

According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold per tola dropped by Rs300, settling at Rs274,400. Similarly, the price of 10-gram gold decreased by Rs257, reaching Rs235,254. This follows a bigger reduction on Friday when the gold rate per tola fell by Rs1,000.

In the global market, the price of gold also dipped. The local bullion association reported the international rate at $2,632 per ounce (including a $20 premium), marking a $3 decrease.

Experts describe the drop in gold prices as part of regular fluctuation. The Rs1,000 decline observed on Friday was attributed to strong US employment data, which typically exerts downward pressure on gold prices. Additionally, the upcoming holiday season in the United States, which has the biggest sway on the gold market, influences consumer spending habits and impacts the market.

Interactive Commodities Director Adnan Agar noted that buyers were keen to take advantage of price dips. He highlighted that gold's lower support level stood at $2,560, a threshold it last reached in November 2023.

Meanwhile, the rupee registered a slight appreciation in the open market, rising from Rs277.25/$ on Friday to Rs277.19/$ on Saturday. This marks a difference of Rs0.06 and a negligible percentage change of 0.02%.

The rupee remained stable within a range of Rs277.70 to Rs278.10 this year, supported by good economic indicators, said Forex Association of Pakistan Chairman Malik Bostan.

The $3 billion deposit rollover by Saudi Arabia, as part of an agreement with the International Monetary Fund (IMF), has further fortified it. This, alongside strong export performance and a booming IT sector, is strengthening Pakistan's economic foundation.

Bostan pointed out that the government's target of attracting hefty foreign direct investment (FDI) and the potential for exports to hit a historic $44 billion may further strengthen the rupee.

Over the weekend, the US dollar rose amid a jobs report showing higher unemployment and modest job gains but it lost momentum ahead of an inflation report next week that could either reinforce or cast doubt over interest rate cut expectations later this month.

The greenback recovered from a three-week low against the euro, which last traded down 0.3% at $1.0561. The European common currency was poised to end the week 0.2% lower, posting losses in four of the last five weeks.